Firms struggling to tap into markets

Irish companies are still struggling to tap into international trade opportunities and explore new markets, despite improving sentiment levels, according to a new survey.

The latest quarterly Global Economic Conditions Survey — from the Association of Chartered Certified Accountants (ACCA) — shows that global business confidence moved into positive territory for the first time in five years, during the first quarter of 2014. Furthermore, the survey noted that 69% of Irish finance professionals said they were optimistic about the state of the national economy, up from 65% in the final quarter of 2013.

According to ACCA Ireland chief, Liz Hughes: “For the first time in years, Irish respondents are expecting public spending to increase in the medium-term, and confidence in the sustainability of public spending remains high, practically unchanged since late 2013.”

However, not all indicators are equally healthy, she added.

“Access to growth capital improved, but remains highly volatile. Business opportunities fell in early 2014, establishing what now appears to be a year-long downward trend. There are fewer opportunities to explore new markets over the last six months — which points to weakening access to international markets.”

This means, Ms Hughes said, that businesses aren’t yet able to capitalise fully on the improved macro-economic outlook in Ireland.

“Business confidence fell in early 2014, and is now up only marginally year-on-year; 36% of respondents reported confidence gains, down from 40% in late 2013, while 23% reported losses, up from 18%. However, the signs are encouraging for 2014, we are in a good position for a positive second quarter in 2014 and I look forward to the findings of the next GECS report,” she added.